Mortgage offer recieved - advice needed!

[Nemesis]

Right - so you haven't got a bad deal possibly, although maybe others offered less ... or more...


But do consider the problems of conversion and selling on...

 

[matthew]

Have you also considered the problems of selling on, with a conversion in place?

We've spoken to a few local agents and they've made some useful points which we've fed back into the architect. It'll hopefully be about 20yrs till we come to sell it, if ever! It'll probably all be tied up in a trust for the kids.

 

[Nemesis]

OK... so you now consider going with another lender, and swallowing the redemption with C and G (although do tell them why and by how much they have lost your custom...)

Next step...

Get an agreement that the survey/valuation will be done by someone from the RICS list of those with conservation expertise, even if you have to pay extra...

If a further damp/timber survey is required, get Ridouts to do it...

I appreciate that they can't do the microbore damp survey, but honestly I wouldn't worry over much, unless that render is cement...

 

[Nemesis]

Here's the listing description...


IoE number: 309240
Location: THE LIMES, 87 MAIN ROAD (north east side)
AUSTREY, NORTH WARWICKSHIRE, WARWICKSHIRE
Photographer: Mr Alfred John Dyson LRPS
Date Photographed: 27 July 2001
Date listed: 22 March 1982
Date of last amendment: 22 March 1982
Grade II



AUSTREY MAIN ROAD
SK2ONE (North-east side)
2/7 No.87 (The Limes)

22/03/52

AUSTREY MAIN ROAD SK2ONE (North-east side) 2/7 No.87 (The Limes) 22/03/52 GV ll House. C18, with slight C19/C20 alterations. Brick with C19/C20 pebbledash, rendered string course and brick dentil cornice, Late C20 plain-tile roof; Cl9 brick ridge and right end stacks. L-plan with wing on left to rear. storeys; 3-window range. Part-glazed 6-panelled door between second and third bays has rendered alternating rusticated surround with blind keyed round arch. Casements of lights and 2 lights to third bay have glazing bars and rendered segmental arches with keyblocks. Lower second floor has cross-glazed casements without arches. interior: room to left has open fireplace with plastered bressumer. Room In wing has moulded ceiling beam and open fireplace with rough cambered bressumer.


http://www.imagesofengland.org.uk IoE no. 309240

 

[matthew]

Hmmm, our listing goes back to 1950 something I think - I'll double check.

The render on the front IS cement based!

 

[Nemesis]

If it's only the front - not so bad.

But it could be the cause of damp, and it really is very bad for the building.

Another thing to consider... you may have been the first to have a survey. The same probs are bound to come up with others who have surveys too. The vendors may find themselves with a house on their hands ...

 

[matthew]

Many thanks to everyone for their comments and support.

The vendors would also be our neighbours, and we would need to rely on them to make some other changes later on - such as sorting out the shared access and future developments (things we cannot put in the contract, but they have agreed to do).

As they do not seem to be supportive of our attempts to purchase the property and will not assist with our attempts to meet the requirements of our mortgage company, we have decided to abandon the purchase.

I feel sorry for our buyers, with whom we got on very well and will have also have committed money. They were are lovely family who would have felt at home in our house.

This is a great shame as we had great plans for the property and were keen to re-instate some of the original features and return the outbuildings to their former use.

As Nemesis has suggested, we were the first people to have detailed surveys carried out on the property - we've now had a full structural and the infamous timber and damp. We've also had builders and plumbers (£15k for the central heating installation!) around for quotes and have obtained costings for numerous other works. We have submitted initial plans to the council which were favourably welcomed and have instructed an architect. I guess that, with solicitors, architects, surveys and mortgage fees we've spent over £3,000 so far.

As I work as a consultant, I tend to keep track of hours I spend on things. It looks as if I've spent over 200hrs on this little project so far. So that about 25 working days. No wonder this was driving me mad! We've 2 lever arch files of paperwork already.

Again, many many thanks to all those who have contributed to my various threads from "affordable housing", "insulation" through to this thread. I think we would have given up a long time ago if wasn't for the advice we got here and the support for SAVE as well.

I'll keep monitoring this board and keep an eye on the property pages to see what comes on the market in the future.

Many thanks

Matthew and family

 

[Nemesis]

Very, very sad - but understandable. It looks as though it could be a lovely property, and I do remember all the past posts.

The shared access could have proved another nightmare... have a look at http://www.gardenlaw.co.uk. Fine if the vendors were being reasonable, but otherwise...

I'm sure David at SAVE will be sorry too. He took over from Ela as BaR Officer. I'll let him know. Those outbuildings are certainly at risk, and it looks as though you got all that problem sorted with the local authority re conversion, and someone else will be reaping the benefits of your hard work.

I rather suspect the vendor may not find things as simple as they thought to sell... and may regret that they weren't more accommodating.

Sad as you say for your prospective purchaser - but you may find something else fairly rapidly, and the time spent on this has given you a great deal of information which could help another purchase.

It's all so fraught, and I sympathise.

Ev

PS Your vendor may have to consider that a bird in the hand etc...

 

[Penners]

It's interesting that, in their preliminary description, the agents state that the bakehouse annexe would be suitable for conversion to offices, but in a note about covenants further down they state that a covenant will prohibit any business-related activities! :roll:

How do estate agents get away with this stuff?!

 

[Nemesis]

Dunno... I suppose an office isn't always a business... you could work from home as a consultant and that may be acceptable, or use it as a study... which could be deemed an office...

 

[NT]

Is approaching another mortgage provider not a cheaper simpler option? One thats used to these types of situation.

NT

 

[Nemesis]

The problem is that's loss of seven thou because of the redemption policies.

It's a lot just because the C and G is playing silly B's.

 

[R King]

We had a similar problem with our mortgage lenders, Royal Bank of Scotland, about 5 years ago on our GII stone farm house. After our initial survey recommended a retention on funds until a damp course had been injected into the rubble walls (yes really!) I contacted the lenders and explained how we disagreed with the survey and why. I then paid for a second survey to be carried out by a historic building specialist (the bank had to agree on who we used) and we ended up with no retention. It cost me a few more hundred pounds but not a lot in the grand scheme of things. In essence I would negotiate with C&G as much as possible and see if you can come to an amicable solution.

 

[matthew]

In essence I would negotiate with C&G as much as possible and see if you can come to an amicable solution./quote]

I feel as though trying to negotiate any further would be fruitless. They've already stated that they are sticking to their company policy, and why can't I just get the work done between exchange and completion.

Here's an extract from a letter I was drafting to them before we decided to abandon the project.

-------------------------------------

At present you are suggesting that the work be carried out between exchange and completion.

We feel that this leaves us, as buyers, very exposed. We need to get the Ridout Survey completed and LBC applied for all the remedial work required.

Here is the scenario.

Wk1 Contracts are exchanged (with a completion date of 16 weeks in the future) and Ridout Associates complete their survey. They take their samples back to their lab for analysis. They have advised that we should recieve the report witih 1 week.

Wk2 We recieve the report and make an appointment to discuss the recommendations with the local conservation officer. Our local CO only works part-time and from our experience it can take 10 days to get to see him! We also send a copy to the C&G for review and comment.

Wk3 Meet with the CO and discuss the proposals. Recieve news from C&G as to if they will support the recomendations made within the Ridout Associates report. If the CO is happy we make a LBC application for the works needed. LBC is processed as a standard planing application and takes 8 weeks for a decision.

Wk11 Recieve decision on the LBC application from the council. The fact that the CO has verbally agreed to the works is no guarantee that LBC will be granted, as he only makes his recomendation to the planning officers.

Wk12 Assuming LBC has been granted instruct contractors to commence work.

Wk14 Works completed and invoices sent to solicitor for release of funds etc.

WK 15 Allowance for contactors delay etc

Wk 16 Completion and possession of building taken.

In the above scenario, what happens if the CO in my area changes? or the planning office do not agree with the CO as to the method or carrying out the works, so LBC is refused? I'm left with a commitment to buy the house from vendors, but will no access to the funds from C&G because I cannot get LBC for the works? That would be an absolute mess that would probably bankrupt me!

Failure to obtain LBC for any of the works above can lead to prosecution and ultimately imprisonment.


-------------------------------------
(Excuse spelling and grammar errors - it was only a draft)

Whilst the chance of LBC being refused is slim, it's still a theoretical risk that I should be having to take.

 

[Nemesis]

There is also the scenario that the work is carried out and the vendors change their mind!

I agree with you it's crazy. This isn't a small retention - this is the entire sum.